Austria's OMV buys Russian gas field stake for $1.9bn

By bne IntelliNews March 7, 2017

Austrian gas major OMV has agreed to pay $1.9bn for a 25% stake in the Yuzhno Russkoye gas field in western Siberia controlled and operated by Russian gas giant Gazprom, the Financial Times reported on March 6. The stake was acquired from Uniper, a power subsidiary of German energy utility E.On.

The CEO of the company Rainer Steel told media that OMV needs a “complete reshuffle” of its assets to lower expenses and boost competitiveness, with Russia being one of the target markets that could secure stable cash flow at low cost and maintain the flow of the natural gas to Europe.

The acquisition of a minority stake in the Gazprom-controlled field will boost OMV's output in Russia by a third, to the 0.4mn barrels of oil equivalent daily.

OMV is also Gazprom's partner on the construction of the Nord Stream-2 pipeline running from northwestern Russia under the Baltic Sea to Germany. 

In 2016, the Russian side offered OMV access to several sites of the Urengoy field in western Siberia, while OMV offered Gazprom developing assets in the North and Norwegian seas. There is progress in negotiations on the exchange of assets with OMV, Gazprom CEO Alexander Medvedev said in June 2016.

Related Articles

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss